This top-performing ETF's largest three stock holdings are Nvidia, Taiwan Semiconductor Manufacturing, and Broadcom.

That sets the table for continued growth over the coming years. Analysts estimate that Nvidia will grow earnings by an average of 38% annually for the next three to five years. Today, Nvidia trades at a forward P/E ratio of 51, a rock-solid value for its anticipated growth.

Artificial intelligence continued to be a driving force behind stock market returns in 2024. Here are some of the stocks that have benefited the most.

Most artificial intelligence ETFs have portfolios concentrated in stocks like Nvidia and Microsoft. The Ark Autonomous Technology & Robotics ETF is an actively managed ETF. Top holdings include several smaller AI stocks many investors aren’t familiar with.

The adoption of artificial intelligence (AI) technology is set to continue at a rapid pace in 2025: Market research firm IDC estimates that investments in data center infrastructure, AI agents, and efforts taken by organizations to embed AI capabilities into their operations will add up to outlays of $227 billion this year.

The second unstoppable Ai stock that can be bought hand over first in the new year is China-based Alibaba Group (NYSE: BABA).

Companies in the energy midstream space are also poised to get a nice boost because AI training and inference are very energy-intensive endeavors. According to Bank of America, electricity demand for data centers is forecast to rise between 10% to 15% a year between now and 2030 and could make up 5% of all worldwide power demand in 2030.